2011年8月11日 星期四

通貨膨脹 今年特別嚴重Global turmoil in markets poses challenge to China

Global turmoil in markets poses challenge to China

Following an increase in pork prices, the price of eggs has surged to an equivalent of 62 yen (86 cents) per 500 grams in Beijing, 20 percent higher than last year. (Keiko Yoshioka)

BEIJING--China, a powerful driver of the global economy, is not immune to the turmoil in the world's financial markets set off by a downgrade of the U.S. credit rating this month.

Investors' flight from stock markets poses a challenge to China as well, whose economy has achieved a growth rate of 9.6 percent in real terms during the first half of 2011.

At an Aug. 9 meeting of the State Council, Premier Wen Jiabao called for responsible fiscal and monetary policies to calm financial markets in a veiled reference to the United States.

He also called for hedging against risks, saying uncertainty and instability in global financial markets are deepening.

Chinese leaders agreed to spare no pains in pursuing the country's policy of achieving stable economic growth while reining in the price of goods.

But containing a surge in prices, which Wen calls the most important of issues, is proving difficult.

The country's consumer price index (CPI) increased 6.5 percent in July from a year earlier, the highest growth rate since June 2008, when it logged 7.1 percent, according to a report released the same day by the National Bureau of Statistics.

For the first seven months of this year, the CPI stood at 5.5 percent, guaranteeing that the figure will surpass the nation's annual goal of 4 percent for this year.

The biggest contributor to surging prices are foodstuffs, which soared 14.8 percent in July from the same month last year.